18 November 2019

CR Gas boosts M&A budget to speed up growth

China Resources Gas Group Ltd. (01193.HK) said Thursday it plans to spend 3 billion yuan (US$489 million) to 4 billion yuan to acquire gas projects this year, aiming to achieve its gas sales target of 20 billion cubic meters by 2015.

By comparison, the company spent HK$836 million (US$107.18 million) on 27 acquisition projects last year, it said in a statement.

“We are tracking on 280 projects in China and we expect the deals will be sealed in three to five years,” general manager Shi Shanbo {石善博} said.

“The supply in Tianjin only reached 1.5 billion cubic meters, far lagging behind our estimation of 5 billion to 6 billion cubic meters,” Shi said. “However, the growth potential is large and we believe it will grow to 5 billion cubic meters in the next few years.”

Last year, CR Gas saw a 30 percent increase in sales volume to 12 billion cubic meters, the statement said. 

The company will continue to expand its natural gas station business, Shi said. “We can offer some stakes to public transportation and logistics companies, and in return they will give us the parking areas or some land to build a natural gas station.” At the end of last year, CR Gas has 192 gas stations across China.

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